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Postal Patron
7th District
Mich igan
Tax Cut Heads List of Economic Action
Congress Moves Forward on the Economy
The Congress is finally moving to o><crc1sc leadership
during these times of economic crisis. From the
sweeping congressional r'efor1"'s in Jonuaty 10 the 522.8
billion tax cu t in Morch. the Congress h os completed 3
months of unprecedented legislat ive octivity, with the
expectation of rnore positive ocrion in the weeks ahead.
Through hard v1ork in caucus. cofnr'niuee. specia l task
force . ond on 1he Floor of the House and Senate the
Congress hos successfully:
• passed o 522.8 billion tax cut to stimulate on
economic recovery :
• established economic and energy priorit ies;
• roforrnod 1hc internal organization of the Congress
to rnoke i t more effective i r\ 1nee1ing its
COr\Sli1u1ionol <esponsibili1ies; ·
• b locked President Ford·s $3 per barrel tax on
imported oil that would hove set off another round
o f inflorion and deepened the recession:
• prevented on unnecessary inc reose ir\ 1he price ot
food s101nps 1ho1 would have had irs greatest
irnpact on Seniat Citizens living on fixed incomes
• developed on al ternative energy proposol thot
would not restri(t on econornic recovery.
It\ addition 10 these cornple1ed achievements. the House
hos passed and sent to the Sena re a number o f
meosu<es that should become low this spring: a Form
Subsidy Bill to ensure the ptoduction o f food products:
on En1orgency M iddle Income Housing Act to enable
middle income fam ilies to purchase housing at
reasonable interest ro tes; on Emergency
Employment Appropriations A ct to create 900.000
jobs through surn1ner youth ernploy1n en1, public service
jobs, and public \vorks projects: on Emergency Home
Owner Relief Progrorn to loon ern ergency 1nor1gage
payments 10 homo owners unable 10 meet their
rnor tgage in stoll1nents due to curre1\t econornic
conditions.
Riegle Action
My s1aff ond I hove been working for n1on1hs in on
e ffort 10 solve the dual economic problen1s of
unemployment and inflation. In December we took to
the top economic advisors in the White House o li st
o f proposols thor included on irn1nedia1e S25 billion
tax cut 10 pull our counrfy out ot fecession. and on
e><pondod uncmployn1cnt progrom to help the jobless
through long periods o f unernploy1nent.
Utility Rate Increases
During the lost year the Utility ro tes for
electricity and gos for M ichigan consum ers hove
increased over $150 million causing enormous
hardships for our people. These rote increases
ore set ot the stole level by the Michigan Public
Service Commission, a three man board
appointed by Governor William Milliken.
Serious and important questions hove been
raised about the ju stifications for these huge
rate increases and o thorough investigation is
needed in several areas.
The Michigan Stole legislature hos set up o
special committee to investiga te the work of
the Michigan Public Service Commission and the
prices M ichigan consumers are forced to pay.
I om following the work of this committee
very closely - and I will propose whatever
federal action is necessary to restore util ity
rotes to reasonable levels.
Our office hos worked on a nurnber of econorny·reloted
projects. so .. ne of these octiv1ties included. developing
o congressional energy proposal: drafting le91slorion
to help the recovery of the auto industry: fighting 1n
the Dernocro tic Caucus to reform 1he internal
or901\iio1ion of Congress: ond speaking our publicolly
on the need for congressional oction on our e<:ono1nic
problems (see seporote stories for deta ils.)
(Q.·•9'<.·nrr:(J11 R•t'!Jft· t:dd1c'>'>•h uo 11n(,•1npi(>'f'"~"' rolly 01 8u1(I.: loco!
599 ·"' fl•nt If ,~ro~o1111( ror~ditu)t\ \ do f\<JI ••nprQVt' ,.,,.(' s"iov1d hold
our tl(>X-1 ~01.'y •n \'lo~hu191or' (> ( ocr<>~~ •tic.- s1rc>e1 1rom 1ne Vln.te
Hnvst' to dC"l•vcr th(• m("UOg<-' d1r(.'c1ly to Pres•derit ford
Some Hopeful Signs
The economic ne\..,..S is still not encouraging os
r\Otionol u1\ernp loyrnent reached 8.7°0 in Morch but
there hove been a fe"'' emerging signs that could
indicate the beginning o f on economic recovery. A
S22.8 billion 1ox cut is signed inro low. Prirne interest
rotes hove dropped from 12° o to 7 '.i 0 o. The stock
market hos increased sharply since Oece1nber.
In Morch the wholesale prices were lower for the fourth
consecutive month. Ando recen t report i r)dicoted thot
public use of energy hod decteosed 2°0 in 1974 v .. •hen
it wo:,, expected 10 i1\creose by at teasl 4~~.
However. joblessness re1noins high w ith f\eor depression
levels in the Flin1 oreo. The Congress and President Ford
must end the current trend o f confrontotion politics and
...... otk together to provide eftecrive policies and st1ong
leadership. Assis1once progron1s for the unen1ployed
1nus1 bo in1proved and expanded to allow thC' jobless
(lod 1hei1 fon1i lies to survive un1il the econorny is on the
upswing Finolly. busine!)S connot be fu rther restricted
by un1\e~es5.ory govern1nen1 regulo 1iot1s 1ho1 odd
uncerrointy 10 indus1rial planning ond highe1· prices to
American consumers.
lessons learned
As ~ ... 11h rhe Grear Depression of the 30 s. America rnusr
be willing to make necessory chonges thot v;ill prevent
1he reoc.<.uronce of another economic cr1s1s like the one
vie ore experier\c1ng today. A long term notional
energy program is vital to the continued econoniic
gro\..,..th o f our country. The inflationary impact of
govern1nen1 ':tpendirlg 1nvst be more corefully
considered i1\ the fulure. Fino lly refor1n n1us1 be
carried ou1 in the areas of public utility costs. federal
ond locol toxC's public ond privote vnemploymont
ossis tonce p1091o f1\s al'1d rhe operation o f 1he fede1ol
banking sysrcni.
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